This bill authorizes cities in Minnesota to establish land-value taxation districts, allowing for a new method of property taxation that focuses on the value of land rather than improvements made to it. The bill introduces new definitions and procedures for creating these districts, including the requirement for cities to adopt an ordinance that outlines the specific parcels included, the tax reallocation process, and an evaluation of the district's economic effects over a minimum of 15 years. Public hearings must be held prior to the adoption of such ordinances, ensuring that property owners have the opportunity to voice their opinions.

Additionally, the bill specifies the tax reallocation procedures within these districts, mandating that taxes be distributed based on uniform rates applied to various tax bases, such as net tax capacity and estimated market value. It also establishes reporting requirements for cities and county treasurers regarding the allocation of taxes and appeals related to land valuation. All provisions of the bill are set to take effect for taxes payable in 2024.